Penn West Petroleum Ltd. (NYSE:PWE)

Expanding businesses show healthy revenue growth. While past growth is no guarantee that revenue will keep rising, it's certainly a better sign than a stagnant top line.

Penn West is well positioned for inflation and growth in the oil and natural gas sector.

.6

This is now a double for me...I should have put it in CAPS last year when I got it.

ratings were high .

outperform

PXD,PWE

World's need for oil isn't going away anytime soon.

Some great drilling opportunities in Cardium, Swan Hills and Amaranth. With oil prices above $90 PWE should move higher.

In spite of the uncertainty introduced by changes in tax rules it has continued to perform admirably. I've held it about two years and have almost doubled my money.

Been holding this for over a year. Returns are nothing short of outstanding. Solid energy company that is diversified. What more can you ask for? Oh yeah a sick dividend play too. Started in the $11 range.

I have owned PWE for about seven years now and it has religiously paid distributions every month like clockwork. I realize the distributions have gone down due to oil prices and the trust conversion, however, please keep in mind we Americans are looking at a Canadian company through U.S. eyes. Every year for the last ten years I have taken a trip to western Canada. I have gotten to know some really nice Canadians and typically they are not the greed driven people that we typically have in the U.S. My point being, Canadians are running PWE and similiar companies for the benefit of the unitholders/ shareholders and not for the benefit of upper management. I truly believe the leadership of PWE is going to do what is right for the shareholder over the lond haul. This is a great company in the energy business on friendly soil and I feel the reserves are stated at a conservative 50%. Hang with this company!

Dividend $1.74
Earnings $.59
Can you say upside down?

Most Energy stocks are taking a hit thanks to the Gulf Coast Debacle, but this is one solid company.

Broad-based energy oriented ----- solid fundamentals

The P/E ratio is a scary as hell...but the rest looks good. Go Canada!

yeild, oil exposure

This is an energy dividend play. A large portion of the "foreign Oil" the US uses is from Canada. Plus the Chinese joint venture will strengthen the capital used in development of already owned leases. I love the monthly payments for cash-flow.

Question:

When does $0 = $1,000,000,000?

Answer:

I have been a big fan of Penn West's ever since the infamous CANROY Halloween Massacre. When valuing this company I always assign practically no value to its oil sands assets. I have never been a big fan of oil sands, which require extremely high oil prices to be profitable. Even after assigning a value of zero to its oil sands properties, I strongly believe that Penn West is extremely undervalued.

Well today the folks at PWE received an absolute gift from China in the form of $817 million in cash for 45% of the company's Peace River oil sands assets. The sovereign wealth fund China Investment Corp. is forming a joint venture with Penn West to develop these oil sands resources. In addition to buying nearly half of these assets, CIC is funding its development by purchasing 5% of PWE's outstanding shares for $435 million. I'm not wild about this dilution for a price that I consider to be too cheap, but I can live with it given the fact that CIC is giving PWE nearly a billion dollars for something that I've always considered to be worthless. Besides this cash will give Penn West the money that it needs to significantly ramp up its production and growth, which it plans to do when it converts to a normal corporation likely later this year.

China to invest more than $1B in Penn West deal

Read more: http://www.financialpost.com/news-sectors/energy/story.html?id=3022640#email#ixzz0npDDCe5b

Deej